1099 Forms

1099 Form 2021

Form 1099 is an information return that has plenty of variants. Each Form 1099 reports a different type of income. Before the 2021 tax season begins, taxpayers who paid certain income to individuals and businesses are obligated to furnish them with a variant of Form 1099.

It’s good to note that most information returns fall within Forms 1099. Considering there is a total of 16 variants of Form 1099, a certain payment is most likely to be reported using a 1099.

Here is a full list of Forms 1099 and the ones that are used the most commonly.

  • 1099 A
  • 1099 C
  • 1099 DIV
  • 1099 H
  • 1099 K
  • 1099 MISC
  • 1099 PATR
  • 1099 SA
  • 1099 B
  • 1099 CAP
  • 1099 G
  • 1099 INT
  • 1099 LTC
  • 1099 OID
  • 1099 Q
  • 1099 R

Among all Forms 1099, these are the most commonly used ones:

  • 1099 INT
  • 1099 DIV
  • 1099 MISC
  • 1099 K
  • 1099 G
  • 1099 R

Here is each of these Forms 1099 report and the purpose behind it.

1099 A—Acquisition or Abandonment of Secured Property

Form 1099-A is required to file for each borrower if a trade or business lends money in connection with the organization in partial or full satisfaction of the debt. This is only required to be filed if the lender has acquired an interest in property that works as security for the debt.

1099 B—Proceeds from Broker and Barter Exchange Transactions

If you’re a broker or barter and you:

sold stocks, regulated futures contracts, foreign currency contracts, debt instruments, options, securities futures contracts, commodities, etc.

or

received stock, cash, or other property from a corporation that you have a reason to know its stock acquired in an acquisition of control or had a change in the capital structure that needs to be reported using Form 8806.

or

exchanged services or property through a barter exchange

1099 C—Cancellation of Debt

Canceled debt is taxable. Therefore, it must be reported using Form 1099 C. If you have debt that is canceled, use Form 1099 C to add it to your gross income.

1099 CAP—Changes in Corporate Control and Capital Structure

If a corporation goes under a substantial change in capital structure, Form 1099 CAP must be furnished to shareholders. You may receive this tax form for the stocks you have.

1099 DIV—Dividends and Other Distributions

Investors will receive 1099 DIV for dividends and other distributions for their stocks. Same as any other information return, attach it to your federal income tax return to report this income.

1099 G—Certain Government Payments

Certain payments made to you by federal, state, or local governments will be reported using 1099 G. Generally, you will be furnished with Form 1099 G if you received:

  • unemployment compensation
  • state or local tax refunds, credits, or offsets
  • agricultural payments
  • taxable grants
  • RTAA payments

1099 H—Health Coverage Tax Credit Advance Payments

Form 1099 H is filed for advance payments received during the year for qualified health insurance payments for the benefit of eligible TAA, PBGC, or Reemployment TAA. You also need to file Form 1099 H if these payments are made to qualifying family members as well or the payments cover them.

1099 INT—Interest Income

1099 INT is what you will receive from your bank or financial institution where you have an interest-bearing account. Same as most other information returns mentioned in this article, use Form 1099 INT to report the interest you earned during the tax year.

1099 K—Merchant Card and Third Party Network Payments

PSEs file Form 1099 K for payments made in settlement of reportable payment transactions for each calendar year. If you’ve had a settlement, you will receive Form 1099 K along with any payment card or third party network transaction in settlement of reportable payment transactions. Form 1099 K reports all the payments received from a third party network as well as payment card transactions.

1099 LTC—Long-Term Care and Accelerated Death Benefits

Long-term care benefits including accelerated death benefits must be reported using Form 1099 LTC. With the 1099 LTC, you must include governmental units, viatical settlement providers, and insurance companies.

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